Tennessee Surety Bonds

Surety Bond Requirements in TN

Regulatory authorities in Tennessee require surety bonds from professionals, contract workers, and companies who wish to conduct business in The Volunteer State. You must be properly bonded if you run an appraisal management company or a collection agency, or if you're a contractor, motor vehicle dealer, public adjuster, or title insurance agent in TN.

In some cases, you must be bonded not only at the state level but also locally. This is true of TN contractors, where, for example, a bond is required for state-licensed contractors who work on projects worth $25,000 or more, but some cities and counties require a local bond as well.

If you need a surety bond to comply with Tennessee business licensure regulations, we can help. NNA Surety Bonds has been providing coverage to organizations across the United States since 1957.

We offer the following surety bonds in the state of Tennessee:

Appraisal Management Company (AMC) Bond

Appraisal management companies in Tennessee must post a $20,000 surety bond as a licensing requirement by the state’s Real Estate Appraiser Commission. Since AMCs are entrusted with selecting qualified appraisers, negotiating fees, monitoring appraisal quality, and providing other important services to lenders and property buyers, they are bonded as a compliance obligation. Your cost for this bond is just $200 for a one-year term.

Collection Agency Surety Bond

To grant a collection agency license, the Tennessee Collection Service Board of the Department of Commerce and Insurance requires you to obtain a surety bond with a coverage amount based on how many employees you have:

  • 1 to 4 employees = $15,000 bond
  • 5 to 9 employees = $20,000 bond
  • 10 or more employees = $25,000 bond

Your surety bond cost will vary based on these factors as well as your credit history and the financial health of your business. Qualified debt collectors could pay a premium rate as low as 1% to 3% of the bond’s full coverage amount.

A collection agency bond protects the public by allowing affected parties to make a claim on your bond in instances where your agency fails to properly pay any court ordered judgments.

Contractor License Surety Bond

The Tennessee Board for Licensing Contractors requires a contractor’s license if your construction project is over $25,000. Below that limit, other types of licenses (and bonds) apply for home improvement contractors, electricians, plumbers, and HVAC technicians.

Contractor license bonds provide financial compensation to the public or the government in case your company violates state regulations or commits fraud. Common bonding requirements for contractors are $10,000 to $50,000, with the annual premium at $100 to $500 per year for qualified applicants.

Home Improvement Contractor Bond

Contractors who work on home improvement projects that cost between $3,000 to $24,999 are required to obtain a home improvement license. In the following counties, home improvement contractors can prove financial responsibility by getting bonded: Bradley, Davidson, Haywood, Hamilton, Knox, Marion, Robertson, Rutherford, and Shelby.

Tennessee Board for Licensing Contractors requires the bond amount to be $10,000. With NNA Surety Bonds, you can secure a one-year term for that bond for $100.

Motor Vehicle Dealer Bond

New and used car dealers who wish to be licensed by the Tennessee Motor Vehicle Commission are obligated to have a $50,000 surety bond. If financial harm comes to a customer or the state through intentional or inadvertent failure to follow state and federal law, the bond may be tapped to settle a claim. TN auto dealer bonds are available through NNA Surety Bonds for as little as $875 for two years.

Public Adjuster Surety Bond

The Tennessee Department of Commerce and Insurance requires all public adjusters to post a $50,000 surety bond as a condition of obtaining a business license. Public adjusters are charged with distributing funds from insurance companies to clients, and are in a position of trust. If you, as the adjuster, fail to handle funds properly, your client may file a claim against the surety bond. We offer bond policies with an annual premium as low as $500 for public adjusters in Tennessee.

Title Agent Surety Bond

The Insurance Commissioner of the State of Tennessee requires licensed title agents to post a title insurance producer bond—also known as a title agent bond—in the amount of $25,000. This bond protects parties to a real estate transaction by providing a means to recover damages if claims of improper actions by the agent are upheld. Your bond cost may be as low as $250 annually, if you have an excellent credit history.

Tennessee Surety Bond Costs
Bond Name Coverage Amount Cost
(Annual Premium)
Regulatory Authority
Appraisal Management Company Bond $20,000 $200* Tennessee Real Estate Appraiser Commission
Collection Agency Bond $15,000-$25,000 $150-$250* Tennessee Department of Commerce & Insurance, Collection Service Board
Contractor License Bond $10,000-$50,000 $100-$500 Tennessee Department of Commerce & Insurance,
Board for Licensing Contractors
Home Improvement Contractor Bond $10,000 $100 Tennessee Department of Commerce & Insurance,
Board for Licensing Contractors
Motor Vehicle Dealer Bond $50,000 $875 (two years) Tennessee Motor Vehicle Commission
Public Adjuster Bond $50,000 $500 Tennessee Department of Commerce & Insurance
Title Agent Bond $25,000 $250 Tennessee Insurance Commissioner

* Cost can vary depending on the bond amount required and your credit rating

Our knowledge of Tennessee bond requirements means we're able to provide accurate quotes quickly. For guidance through the process of selecting surety bonds for your business, talk to one of our experts today.

For faster service, call us at 855-215-2160
Monday to Friday, 6 a.m. to 5 p.m. (PT)

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